Netcapital Inc (NCPLW) Q1 2026 Earnings Report

Netcapital Inc (NCPLW) reported QQ1 2026 results that underscore a stark profitability challenge even as the underlying platform exhibits a high gross margin. Revenue for QQ1 2026 was 190,058 (USD) with gross profit of 182,649, yielding a gross margin of 96.10%. However, operating expenses dominated the P&L, totaling 3,460,888 and driving an EBITDA loss of 3,278,239 and a net income loss of 3,642,052. Earnings per share stood at -1.27 on 2,873,379 diluted shares. The quarter shows a pronounced YoY revenue decline of 45.3% but a QoQ rebound of 24.5% in revenue, while gross margin remains elevated. The company continues to incur substantial G&A and selling/marketing expenses alongside other operating costs, resulting in continued negative cash flow.

From a liquidity perspective, near-term resilience remains a concern: current ratio and quick ratio are both around 0.27 and cash ratio near 0.25, signaling tight short-term liquidity despite a very modest leverage profile (debt ratio ~0.0584; debt/equity ~0.0645). Cash per share is approximately 1.73, and FCF metrics are negative (operating cash flow per share and free cash flow per share both at -3.96). Management guidance is not disclosed in the provided dataset; thus, the forward path hinges on monetization of the platform, cost discipline, and expanding cross-sell opportunities within the advisory and valuation services stack.

Compared with select fintech peers in the dataset, Netcapital shows a superior gross margin but significantly weaker profitability and liquidity metrics, underscoring the gap between product-market fit and the economics required for sustainable cash generation. The investment thesis remains highly contingent on execution: accelerating revenue growth, improving operating leverage, and converting platform usage into durable fee-based revenue.